I like using Keyword Spy (keywordspy.com) and I'm pretty sure its a lot cheaper than Compete.
Best posts made by ezclickmedia
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RE: Competior Research & Analyse
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RE: Exact url dynamic keyword insertion
I think you need to ask yourself this: If you were doing this type of "shady" PPC marketing like your competitor is, and they found out about it, do you think they would be so kind as to not turn you in?